Shares of Netflix (NASDAQ: NFLX) fell more than 4% intra-day on Wednesday after the streaming giant issued softer-than-expected guidance while pursuing a large acquisition bid for Warner Bros. Discovery's studio and streaming assets.

For the quarter ended December 31, Netflix reported earnings of $0.56 per diluted share on revenue of $12.05 billion, narrowly topping analyst expectations of $0.55 per share on revenue of $11.97 billion. The results reflected continued engagement with popular content, including the final season of Stranger Things and the release of Frankenstein.

Netflix said it closed the year with 325 million global paid subscribers. Advertising revenue more than doubled from 2024, rising to over $1.5 billion.

Looking ahead to the first quarter, the company forecast earnings of $0.76 per share on revenue of $12.16 billion, compared with analyst estimates of $0.81 per share and $12.19 billion in revenue.

For full-year 2026, Netflix projected revenue of $50.7 billion to $51.7 billion, versus forecasts of $51.03 billion. The outlook implied annual revenue growth of 12% to 14%, or 11% to 13% on a foreign-exchange neutral basis, slowing from the 16% growth rate recorded in 2025.

The company also pointed to a decline in viewing hours for non-branded licensed content, following elevated licensing activity in 2023 and 2024 related to the 148-day Writers Guild of America strike that disrupted production.

The guidance followed news that Netflix had improved its $72 billion offer for Warner Bros.' studios and HBO Max streaming business, as it sought to strengthen its position in a bidding contest involving Paramount Skydance.